Stronger-than-anticipated
demand highlights the third quarter
Redwood City, California
– October 18, 2000 – Check Point Software Technologies
Ltd. (Nasdaq: CHKP), the worldwide leader in securing the Internet,
today announced financial results for the third quarter ended
September 30, 2000. Revenues were $116.0 million, compared with
$57.8 million for the same period in 1999, an increase of 101%.
Net income for the quarter was $61.6 million,
or $0.35 per share (diluted), compared with net income of $24.7
million, or $0.15 per share (diluted) for the same period last
year. This represents an increase of 149% in net income and 133%
in earnings per share (diluted) over the same period a year ago.
Revenues for the first nine months of 2000 were
$284.8 million, an increase of 88% over the prior year's period.
For the nine month period ended September 30, 2000, net income
was $140.2 million, or $0.80 per share (diluted), an increase
of 112% and 95%, respectively, over the nine months ended September
30, 1999.
Cash, cash equivalents and other interest bearing
investments increased by $78.3 million, totaling $542.6 million
on September 30, 2000.
"The third quarter was an exceptional
one for Check Point," said Gil Shwed, chairman and chief
executive officer of Check Point Software Technologies. "We
experienced stronger than anticipated demand, as sales from all
regions and channels, especially the service provider channel,
were robust during the quarter."
Third quarter highlights/business drivers include:
- VPN market share leader – Check Point
attained 52% VPN market share according to a recent Gartner
Group study
- SVN architecture - Check Point has
grown its installed base to over 162,000, with more than 66,000
VPN gateways and 42 million remote VPN users, serving over 55,000
customers
- Check Point Everywhere – SmallOffice
product suite
Check Point announced VPN-1/FireWall-1 SmallOffice, a software
solution to bring comprehensive Internet security to enterprise
small remote offices and small businesses that fully integrates
into a variety of turn-key appliances
- New levels of VPN performance – Check
Point announced an over 300 megabit per second VPN accelerator
developed by Broadcom, which offers the highest levels of VPN
performance at unprecedented price/performance points. This
represents another significant step towards developing products
and technologies designed to achieve multi-gigabit VPN performance.
"Check Point continued to grow its core
business as well as expand into new market segments, consistent
with our Check Point Everywhere strategy, " continued Mr.
Shwed. "Finally, I am proud of our team's execution on our
vision of securing the Internet through our SVN architecture."
Safe Harbor Statement
Statements in this press release which are not purely historical
are forward-looking statements, including any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Because such statements deal with future events, they are subject
to various risks and uncertainties and actual results could differ
materially from the company's current expectations. Factors that
could cause or contribute to such differences include, but are
not limited to: the impact on revenues of economic weakness in
geographic regions of the world; the inclusion of network security
functionality in third-party hardware or system software; any
unforeseen developmental or technological difficulties with regard
to our products; changes in the competitive landscape including
new competitors and/or the impact of competitive pricing and products;
timely availability and customer acceptance of new and existing
products, and other factors and risks discussed in our Report
on Form 20-F for the year ended December 31, 1999, which has been
filed with the Securities and Exchange Commission. The company
assumes no obligation to update information concerning its expectations.
About Check Point
Software Technologies
Check Point Software Technologies is the worldwide leader in securing
the Internet. The company's Secure Virtual Network (SVN) architecture
provides the infrastructure that enables secure and reliable Internet
communications. SVN secures business-to-business (B2B) communications
between networks, systems, applications and users across the Internet,
Intranets and extranets. Check Point's Open Platform for Security
(OPSEC) provides the framework for integration and interoperability
with "best-of-breed" solutions from over 250 leading
industry partners. The company has U.S. headquarters in Redwood
City, California and international headquarters in Ramat-Gan,
Israel. For more information, please call us at (800) 429-4391
or (650) 628-2000 or visit us on the Web at http://www.checkpoint.com
or at http://www.opsec.com.
###
2000 Check Point Software Technologies
Ltd. All rights reserved. Check Point, the Check Point logo, FireWall-1,
FloodGate-1, INSPECT, IQ Engine, Meta IP, Open Security Extension,
OPSEC, Provider-1, User-to-Address Mapping, VPN-1, VPN-1 Accelerator
Card, VPN-1 Appliance, VPN-1 Certificate Manager, VPN-1 Gateway,
VPN-1 SecuRemote, VPN-1 SecureServer, Secure Virtual Network and
ConnectControl are trademarks or registered trademarks of Check
Point Software Technologies Ltd. or its affiliates. All other
product names mentioned herein are trademarks or registered trademarks
of their respective owners. The products described in this document
are protected by U.S. Patent No. 5,606,668 and 5,835,726 and may
be protected by other U.S. Patents, foreign patents, or pending
applications.
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amount)
|
|
Three Months Ended
September 30
 |
|
Nine Months Ended
September 30
|
|
|
(unaudited) |
|
(unaudited) |
|
|
|
1999
|
|
2000
|
|
1999
|
|
2000
|
|
| Net
revenues |
|
$57,779 |
|
$116,014 |
|
$151,622 |
|
$284,848 |
| Cost
of revenues |
|
6,053
|
|
9,407
|
|
15,856
|
|
25,057
|
| Gross
profit |
|
51,746 |
|
106,607 |
|
135,766 |
|
259,791 |
| Operating
expenses: |
|
|
|
|
|
|
|
| Research
and development, net |
4,892 |
|
8,344 |
|
13,288 |
|
21,178 |
| Sales
and marketing |
18,343 |
|
28,467 |
|
46,730 |
|
80,418 |
| General
and administrative |
3,385
|
|
5,094
|
|
9,466
|
|
14,795
|
|
| Total
operating expenses |
26,620 |
|
41,905 |
|
69,484 |
|
116,391 |
|
| Operating
income |
|
25,126 |
|
64,702 |
|
66,282 |
|
143,400 |
|
| Financial
income, net |
3,609 |
|
7,800 |
|
8,938 |
|
19,705 |
| Capital
gain |
0
|
|
0
|
|
192
|
|
0
|
|
| Income
before income taxes |
28,735 |
|
72,502 |
|
75,412 |
|
163,105 |
| Income
taxes |
4,010
|
|
10,858
|
|
9,452
|
|
22,911
|
| Net
income |
|
24,725
|
|
61,644
|
|
65,960
|
|
140,194
|
|
| Earnings
per share (Basic) |
$0.17
|
|
$0.40
|
|
$0.45
|
|
$0.91
|
| Earnings
per share (Fully diluted) |
$0.15
|
|
$0.35
|
|
$0.41
|
|
$0.80
|
|
| Number
of shares (Basic) |
149,404
|
|
155,612
|
|
147,680
|
|
154,495
|
| Number
of shares (Fully diluted) |
165,684
|
|
176,187
|
|
162,376
|
|
175,343
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
ASSETS
|
September 30,
2000
|
|
December 31,
1999
|
|
(unaudited) |
|
(audited) |
| Current
assets: |
|
|
|
Cash
& cash equivalents, short term
deposits and marketable securities* |
$462,516 |
|
$242,490 |
| Trade
receivables, net |
78,114 |
|
47,639 |
| Other
receivables and prepaid expenses |
15,769
|
|
9,287
|
| Total
current assets |
556,399
|
|
299,416
|
|
Investments
in marketable securities
and bank deposits* |
80,087
|
|
82,282
|
|
| Other
investments |
1,126
|
|
602
|
| Long
term prepaid expenses |
765
|
|
1,145
|
|
| Net
property and equipment |
10,728
|
|
9,694
|
|
| Deferred
income taxes |
1,324
|
|
1,207
|
|
$650,429
|
|
$394,346
|
|
*Total
cash and cash equivalents and
other interest bearing investments |
$542,600 |
|
$324,772 |
LIABILITIES AND
SHAREHOLDERS' EQUITY
| Deferred
revenues |
$105,381 |
|
$55,999 |
| Trade
payables and other accrued liabilities |
92,960
|
|
45,213
|
| Total
current liabilities |
198,341 |
|
101,212 |
|
| Accrued
liabilities (long term) |
1,040
|
|
626
|
| Total
shareholders' equity |
451,048
|
|
292,508
|
|
$650,429
|
|
$394,346
|
|
|
